tv Studio 1.0 Bloomberg February 28, 2015 9:30am-10:01am EST
make no mistake about it. they're out there. i guarantee it. welcome to the nascar xfinity series. ? >> by now, you know his story. the kid who started the social network in his harvard dorm room. he became one of the wealthiest men in the world. what mark zuckerberg may not be changing the world just yet. taking facebook public has only made it bigger. using billions to expand his empire into photos, even virtual reality. featuring an epic battle with google, drones, lasers, stratospheric hot air balloons, to bring the internet to the
farthest corners of the earth. with billions of new users any process. our guest today on this special edition of studio 1.0 is facebook founder and ceo mark zuckerberg. >> first of all, you are a year and a half into this. tell me your vision. tell me what inspired you to do this. >> when people are connected, we can just do some great things. we have the opportunity to get access to jobs, education, health, new kinds of communication. we bring people that we care about closer to us. it makes a big difference. the internet is how we connect to the modern world. today, unfortunately, only one third of people have any access to the internet at all. that is around 2.7 billion people. that means two thirds of people in the world don't have access to the internet -- that seems really off to me. they're all of these studies that show in developing
countries, more than 20% of gdp growth is driven by the internet. if we connected one billion more people to the internet, 100 million more jobs would be corrected and. more than that would be lifted out of poverty there is this deep belief at facebook that technology needs to serve everyone. connectivity cannot just be a privilege for those in the richest countries. connecting everyone in the world is the challenge of our generation. that is why we are happy to plate a small role in that. >> what have you tried compromise on? >> what we have learned is there are very few areas to connectivity. the first one is that people do not have any access to a network. it is a technical barrier. even if they had a phone and could pay for data, there was no cell phone tower to have access.
there are projects like satellite and drones that we are working on to help create connectivity in areas where there aren't that today. that is important, but it turns out that is a small part of the problem. only 15% of people are connected or not connected because of a technical barrier. the next barrier is affordability. a lot of people who have access cannot afford to pay for it. the solution is to make it more efficient, make it so the work infrastructure, the apps consume less data, and there is a lot of work going into that. we made the facebook app on android. it uses about five times less data than it used last year. we have made a bunch of these tools open for those to use. it turns out that the biggest you hurdle is not technical or affordable, it is the social challenge.
the majority of people who aren't connected are in range of a network and can afford it, but they actually don't know why they would need to use the internet. it makes sense if you about it. if you grew up and it never used the internet or a computer, and someone asks if you want to buy a data plan, your response would be, why would i want a data plan? that ends up being the biggest challenge, and one that we can and have the most value by giving people some free basic a giving people some free basic services by working with officers -- operators to make the internet and on rent for a the internet and on rent for everyone. >> facebook is a for-profit company. why call it .org? >> if we were mainly focused on profits, the main thing to do would be to focus on the first billion users. the first billion people on facebook have more money then
the rest combined. it does not make sense to put the emphasis that we do right now in that sense. and the reason we do is mission -- we take that seriously to in connect the world. and you cannot do that if two thirds of the world does not have access to the internet. you and we decided that in the a next 10 years, we want to take you on some challenges in the world, like having. a everyone get online that is important for us and other internet companies. over the long-term it could be good for our company. if you look at a 10-30 year time line. a lot of these countries and economies will develop, and over time they will be important. most people do not make investments for 30 years down the line. >> you said a year ago when you spoke with david kirkpatrick and your that you couldn't construct a short-term model.
do you have a better idea now? in when will this become profitable? >> no, i don't have a better an>> no, i don't have a better idea. the reality is that if people cannot afford to pay for data access, then they probably are not big ad markets. in fact, we will probably lose a bunch of money just because supporting facebook as a service and storing photos costs money. we will probably not offset it by making much. >> he said connectivity is a human right. if that is the case, why not get access to the complete internet? why not just a few specific apps? >> it comes down to the economics. if you look at things like text messages, services like search or wikipedia or health information, that can be delivered for relatively cheap. in it can often consume less
than 1% of the overall infrastructure. if you are thinking about building something to be offered for free, it needs to be cheap. we found a series of services that can be offered that will still be profitable to the you operator. this would be something like 911 in the u.s. even if you do not have a phone plan, you can always i will 911 and if there is a fire or a crime, you can get basic health. we think the internet should have something like this as well. you if you do not have a data plan, you should have access to will basic health information, basic communication tools. and it will vary from country to country. when we launched in zambia -- in youwhen we launched in zambia -- in there, hiv is a big issue. so we used resources about staying healthy.
>> we have spoken to top at executives who have want to expand to developing markets. they are six -- are excited to advertise through internet.org. how do they advertise? >> we need to work out a model with governments and local businesses to make your it is profitable for them to make sure they can keep growing the internet. we found out in some of these countries -- the philippines -- indonesia. you and you offer a little bit you of the internet for free, and as more people start accessing the internet, more people start paying for data. once they understand what they would use the internet for, people. would understand why they would pay for data . the operators make more money. then they can reinvested to make better infrastructure. that ends up being very
important. we have focused on for the last couple of years is how he can build a model that is sustainable for everyone and delivers free internet to people. originally bought working with in other partners -- originally we thought working with other partners would work. but now a lot of countries are coming online and operators are coming to us. i expect to see a lot over the next year. >> does that mean no advertising? >> i don't think it is necessary to subsidize and make this a cheap model. in most of these countries there in is not a big ad market yet. it is not that we won't do it eventually, but right now what we need to do is to -- we are focused a lot on the quality of the ads. doing that in the developed in world -- in asia, europe, it is going to be the biggest driver of profitability, not
a trying to make at markets out of countries just coming to life. >> once you get people connected, once you have the power to reach them, how do you use that power? >> do you mean us >> i am talking about facebook. >> for us, it is all about enabling people. we worked with zambia to rollout a suite of basic services. within weeks we heard amazing and stories coming in of people using the internet. in and expectant mother using the internet for the first time to look up safety and health information for how to raise her child. a poultry farmer using a spoke, are you setting up a page to a sell multiple times more chickens than he has sold you before. a university student using wikipedia to look up the information and save money on books that she needed for an exam. you is pretty crazy. within weeks, these experiences come back. that is what we are here to do. the internet is a big enabler
it makes it so that our partners can make more profit so they can build at a faster and broader internet for everyone. >> google is proud l -- working on projectoon. >> connecting everyone will be something that no single company can do by itself. i am glad that they are working on this. this is a partnership between a number of different technology, knees and nonprofits and governments. companies are doing things that are separate. that will be necessary. inre is a lot of technology order to tackle all three of those major barriers that we have talked about. making it so that everyone has a network near them, the network is efficient and taking it so that people have the content they need in order to want to get online and consume all of
this. i am positive. our team is in contact with google frequently. when we launched in zambia and good yield -- google was one of the services. that is valuable. in addition to health services and different government services people need to find information. orther we work with google others, that is an important thing. searche a girl great project. .ill gates criticize, what have you heard from him and how do you respond to that. bill and i have had a few conversations about this. i think the reality is that people need a lot of things in order to have a good life. health is certainly important.
we have done a number of things at they spoke to improve global health. i am excited to do more there, too. the reality is that it is not an either/or. people need to be healthy and have the internet as a backbone to connect them to the economy. it creates jobs, it facilitates health. for example, in the most recent ebola outbreak, i asked folks who were involved in containing the outbreak what can we do to help. the first thing they said is to help get conductivity. they need to wire up these ebola treatment units to coordinate response so that people can count those who have come into contact with ebola. it ends up being important. i am certainly not here saying that connectivity is more important than health -- that would be ridiculous. i hope we can improve all of these things over time. >> we have been getting some notes from zambia, i believe it
was something like 200 something facebook users. but 300,000 people using everything else. i wonder how people care about the basic services compared to facebook. >> it is one of the big services people want to use. one of the reasons people get online in a developing country is to connect with people. messaging services like whatsapp and facebook messenger are some of the most important services that people want to use. to some degree, it is not that surprising, but i think more people are using these other services. >> messenger is part of the suite as well. will whatsapp be part of the internet.org suite as well? >> some countries have 911, others have health and crime.
in each country, the government and local operators will need to figure out what services they want to include. >> google has android. how do you overcome not having the hardware? >> our strategy is to build things people want to use. facebook is the most used app. whatsapp and messenger and instagram are some of the next most used apps. at some level, as long as we are building services that people want to use and help them, it is not a big of a deal. it is certainly stressful that we think we can help them more or deliver our services better if we had more partnerships. but it is not something i am that stressed about at this point. as long as we stay focused on building our own stuff, that is the right thing to stay focused on, not worrying about what others are going to do.
drones and lasers -- you have a whole line working on this. when will facebook drones and lasers be ready for launch? >> we will be testing some in the near future. i would be mistaken if i gave you an exact date. that is one of the big technical barriers. there are a lot of people who do not live in range of a network. drones and satellites and laser communication is one way to do it. microwave communication is another. they will be the solutions for providing connectivity to people where there are no existing cell phone towers or infrastructure.
>> facebook is going to be wrapping up spending -- how much is going to go to internet.org? >> we are investing a bunch in this. >> we were talking about china -- your mentor and has gotten good. -- your mandarin has gotten good. what are the changes that internet.org can get facebo ok back into china? >> that is not our priority right now. some countries say that many of their citizens use facebook. in malaysia, i was meeting with one of the government leaders there. making sure that citizens are connected is one of their top priorities. indonesia and india as well.
it makes sense for us to prioritize countries that are reaching us proactively. >> how will you judge that this has been a success? 10 years ago, you are vision was to get one billion people on facebook. people bought that was so audacious. >> the goal is to make it so that a person can walk into a store in any developing country, by a phone, and get access to free, basic internet services. that is a priority for everyone around the world. once we make sure this system works in every country, that is step one. step two is making people use it. that is its own challenge. the internet is one of the best way to teach people about resources. a secondary goal is to make it so that this is a profitable
thing for the whole international operator community. that is how you make this sustainable. this can't be something that is just charity for these operators around the world. this will work if providing free, basic services actually ends up being a way to get more paying customers and people online. that they can spend more money to invest and build faster networks to reach more people. the signs we have from the early countries that we are in suggest that both of those will be true. that is what i look forward to most. if one billion or more people can get connected in these countries, it is a huge win for all these people. they have access to new information on jobs, health information, and communication tools they do not have before. >> thank you very much, mark. ?
and welcome to "inside fendi." we are in rome, and over the next 30 minutes, bloomberg brings you behind the scenes of one of the most iconic italian fashion houses, fendi, with the ceo pietro beccari. in 1925, two italians opened a fur and leather shop in rome. their names -- edoardo and adele fendi. the mantle passed to their five daughters, and is there where the fendi story really begins. they had some help from this man, karl lagerfeld.